June CPI: Warning Of Stagflation
Another month, another red hot CPI reading, which has added even more fuel to inflation hysteria. However, the CPI’s component data tells us differently.
Record Inflation? Bond Yields Disagree
Core PCE has come in at an almost 30 year high. While this adds even more fuel to the popular “economy is overheating” narrative, what do markets make of it?
The Devil In 12 Year High CPI
In the US, CPI for April came in at a whopping 4.2% YoY; the data point handily beat expectations, but does it herald real change?
What Is Stagflation, & Why Is It Bad? A Simple Explanation
What happens when prices of basic goods rise while income declines? For most people, it’s another day in our Covid reality. Economists call it Stagflation.
Does QE Drive Food Prices Up? A Simple Explanation
Does QE lead to rising food prices? A chart of food prices vs bank reserves would suggest that it does. But remember that correlation is not causation!
Is QE Insane? These 3 Simple Charts Show Why
The Fed, BoJ, and ECB have not consistently met their inflation targets, even after 10 years of QE worth trillions! What’s the definition of insanity again?
The Devil In Europe’s HICP
EU wide inflation rose markedly higher in January 2021, but this wasn’t due to a massive economic expansion. Instead it was down to a re-weighting of the HICP.
QE vs Hyperinflation: Are You A Victim Of Hysteria?
Hyperinflation hysteria calling for the death of the USD is hyperbole, and is a consequence of people misunderstanding what QE really is.
The Devil In CPI Headlines
US CPI rose by the most in almost 9 years! Anyone reading that headline could be forgiven for thinking that the US economy is booming. But is it really?
How To Get Off The Monetary Hamster Wheel
Inflation arises from the interplay between money supply and velocity. One component on its own isn’t enough to give the economy the impetus it needs to grow.
